from study.com
Definition
Vertical integration is the combination of two or more separate stages in the channel of distribution through ownership, including mergers or acquisitions (i.e., the expansion of a business by acquiring or developing businesses engaged in earlier or later stages of marketing a product).
In forward vertical integration, manufacturers might acquire or develop wholesaling and retailing activities.
In backward vertical integration, retailers might develop their own wholesaling or manufacturing capabilities.[1]
References
- ^ American Marketing Association, AMA Dictionary.